A common way of enlisting someone to contribute in some way to your startup is to offer them equity in your company. This however presents the question of: ‘What do I do if they walk away before they’ve held up their end of the bargain?”
A Restricted Stock Purchase Agreement protects you in this type of situation. It is much cheaper than trying to cancel shares and/or buyout shareholders down the track (when the shares are hopefully worth much more).
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